Chief executive officer of the board Prince Phwetekere made the remarks in an interview with the media in Lilongwe after signing a memorandum of understanding (MoU) with institutions of higher learning from the Central and Northern regions whose students benefit from education loans from the board.

The MoU outlines the terms and conditions under which the loans board will work together with the universities in the areas of loan and grants disbursement as well as loan recovery.

“It reflects our dedication to proactively identify and support students who demonstrate financial need, ensuring that the process of applying for and receiving loans is accessible, fair, and free from discrimination,” said Phwetekere.

For instance, he added, both the MoA and the Act that established the Board require the universities, as employers, to support loan recovery efforts just like any other employer by demanding from every employee to declare their loan status at the recruitment stage.

“Once that declaration is made, you will notify the Board within 30 days of the employment of a graduate employee who is a former student loan beneficiary. You will then as employers ensure that monthly deductions are made from the salary of a loan beneficiary and remit the same to the Board within 15 days after the end of the month,” said Phwetekere

Additionally, the Agreement provides mechanisms for conflict resolution, which will help prevent conflicts from escalating and ensure that disagreements are handled in a structured and amicable manner, he disclosed. 

Dr. Emily Grace Mwale, Vice Chancellor of Nkhoma University says the MOU is very important as it will help increase the number of needy students benefiting from the loans.

“Where there is a legally binding agreement, it’ll be easier for us to work with the loans board. On our part, we’ll help them in recovering the loans from the employees,” said Dr Mwale, “I also hope this will help to increase the number of students that receive the grants.

According to Sam Kakhobwe, HESLGB Board Chairperson, for these objectives to be achieved, it is imperative for the board and the universities to uphold high standards of transparency and accountability in the loans and grants program which includes open communication and clear reporting of funds disbursement and usage.

“Therefore, as higher education institutions you are expected, under this agreement, to provide the Board with copies of accreditation certificates for both the institution and each specific academic program, as granted by the National Council for Higher Education.

“Should any funds be mistakenly allocated to ineligible students, the university agrees to promptly refund such amounts in line with the stipulations of this agreement,” he said.

Among the universities that signed the MoU were Lilongwe University of Agriculture and Natural Resources, Mzuzu University, Kamuzu University of Health Sciences, Catholic University of Malawi, Malawi Adventist University, Exploits University, Jubilee University, Lake Malawi Anglican University, Millenium University, Nkhoma University, Pentecostal Life University and Share World Open University Malawi.